Investors can certainly boost their returns by concentrating on stocks trading between $1 and $10. However, a disciplined approach is necessary because many of these businesses are speculative and lack the underlying fundamentals to support their prices.
The downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here is one stock under $10 with explosive upside potential and two that may have trouble.
Two Stocks Under $10 to Sell:
Kohl's (KSS)
Share Price: $9.26
Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE: KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.
Why Do We Steer Clear of KSS?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Kohl's is trading at $9.26 per share, or 34.9x forward P/E. Check out our free in-depth research report to learn more about why KSS doesn’t pass our bar.
Hillman (HLMN)
Share Price: $7.49
Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ: HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.
Why Are We Wary of HLMN?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- ROIC of 4% reflects management’s challenges in identifying attractive investment opportunities
At $7.49 per share, Hillman trades at 13.3x forward P/E. If you’re considering HLMN for your portfolio, see our FREE research report to learn more.
One Stock Under $10 to Watch:
FTAI Infrastructure (FIP)
Share Price: $6.20
Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ: FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.
Why Does FIP Stand Out?
- Impressive 33.3% annual revenue growth over the last three years indicates it’s winning market share this cycle
- Exciting sales outlook for the upcoming 12 months calls for 78.2% growth, an acceleration from its two-year trend
FTAI Infrastructure’s stock price of $6.20 implies a valuation ratio of 2.7x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
